HomeMy WebLinkAbout04-17-17 Board Minutes 1
MINUTES OF THE
SPECIAL MEETING OF THE BOARD OF DIRECTORS
OTAY WATER DISTRICT
April 17, 2017
1. The meeting was called to order by President Robak at 3:05 p.m.
2. ROLL CALL
Directors Present: Croucher, Gastelum, Robak, Smith and Thompson
Staff Present: General Manager Mark Watton, General Counsel Daniel
Shinoff, Attorney Jeanne Blumenfeld, Asst. General
Manager German Alvarez, Chief of Engineering Rod
Posada, Chief Financial Officer Joe Beachem, Chief of
Administration Adolfo Segura, Chief of Operations Pedro
Porras, Asst. Chief of Operations Jose Martinez, District
Secretary Susan Cruz and others per attached list.
3. PLEDGE OF ALLEGIANCE
4. APPROVAL OF AGENDA
A motion was made by Director Thompson, and seconded by Director Smith and
carried with the following vote:
Ayes: Directors Croucher, Gastelum, Robak, Smith and Thompson
Noes: None
Abstain: None
Absent: None
to approve the agenda.
5. ADOPT RESOLUTION NO. 4333 A RESOLUTION OF THE BOARD OF
DIRECTORS OF THE OTAY WATER DISTRICT TO CENSURE DIRECTOR
HECTOR GASTELUM FOR OFFICIAL MISCONDUCT
Director Thompson indicated that the presented resolution is sponsored by
Director Smith and himself. He stated that the resolution is in response to public
testimony received at the March 1, 2107 that had really moved him. He stated
the resolution censures Director Gastelum, a fellow board member, and that
censuring a board member is a serious action which is not taken lightly. Director
Thompson read the resolution into the record (see attached copy of Resolution
No. 4333).
Director Thompson clarified that the resolution does not take any rights away
from Director Gastelum as he is elected to his seat on the board by the
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constituents of his division. It, however, provides an opportunity for the District’s
board to make a general statement about Director Gastelum’s comments.
Director Smith added that he worked with Director Thompson and the District’s
General Counsel to determine what the board could do in this situation and the
presented resolution is the result of that discussion. He stated that, as Director
Thompson noted, Director Gastelum is elected by the public and the board does
not have jurisdiction over that election. He stated that this resolution became
necessary because of Director Gastelum’s comments during the March 1, 2017
board meeting. He stated that he wished to clarify that the word “censure,” in this
situation means a reprimand of a “behavior,” typically in a public setting, and it is
not a censorship of the language used by Director Gastelum. He encouraged
Director Gastelum to recognize that he represents water customers of his
division and not just himself.
Director Thompson indicated that he wished to clarify that Director Smith and he
have not spoken with any other member of the District’s board about the
presented resolution.
General Counsel Daniel Shinoff indicated that the presented resolution does
require a majority vote of the board to enact the “censure.” A censure is a strong
expression of disapproval and criticism of the conduct of a member of the Board.
A motion was made by Director Thompson, and seconded by Director Smith to
approve Resolution No. 4333 censuring Director Gastelum for official
misconduct.
Director Gastelum requested a clarification of what Board of Directors Policy 40
entails and asked specifically what comments he had made at the March 1, 2017
meeting that necessitated this resolution.
General Counsel Shinoff indicated that Policy 40 is the Board of Directors “Ethics
Policy” which establishes defined guidelines and specific prohibitions to which
elected officials of the District’s Board of Directors must conform to in pursuit of
their assigned duties and responsibilities to foster public respect, confidence and
trust.
Director Thompson added that Director Gastelum had not provided, in his
judgement, an apology with true contrition for his comments which cast a large
cloud over an entire religious group. This is the reason the resolution is being
presented for the board’s consideration.
Director Gastelum indicated that he was very specific to whom his comments
were geared towards and what behaviors he was condemning. He stated that he
has said repeatedly that he did not intend to paint all Muslims with the same
brush. He indicated if they do not accept the apology, that it is on them.
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Members of the public requested to address the board on this item. The first
speaker was Mr. David Patterson of Ramona, representing the San Diego
Veterans for Peace, stated that his organization is made up of United States
military veterans, many of whom saw combat in Afghanistan, Vietnam and the
Korean wars. He stated that his organization’s members are appalled by the
current state of bigotry, racism and hatred expressed towards Muslims. Bigotry
and racism violates all the values that they believed they were defending during
their military service. He asked the Otay WD board to pass the presented
resolution to censure Director Gastelum and, as a next step, to demand his
resignation.
Mr. Mitsuo Tomita of San Diego indicated that he is appalled by Director
Gastelum’s comments and felt that such comments are not consistent with a
public office. He stated he feels that Director Gastelum should resign and that
the board should take action on the resolution.
Mr. Chris Pearson of Spring Valley stated that though Director Gastelum
indicates that it was not his intention (to call all Muslims subhuman), it is still the
epitome of hate and it is wrong. He stated he is opposing the presented
resolution because it does not go far enough and urged the board to amend the
resolution to replace “censure” with “remove.” He asked Director Gastelum to
resign.
Mr. Edgar Hopida of Chula Vista indicated that he had provided Director
Gastelum a book titled, “The Fear of Islam: An Introduction to Islamophobia in
the West” after the board meeting on March 1, 2017 as he thought that Director
Gastelum was just misinformed. He stated that he had contacted him a few days
later and Director Gastelum indicated that he had not yet read the book because
he had ten (10) other books to read ahead of that book and needed to read those
books first. Mr. Hopida stated, additionally, that Director Gastelum’s social media
posts following the March 1 meeting have been anti-Islamic. He indicated that he
does not feel that Director Gastelum’s apology is sincere, nor is he willing to
learn. He stated for these reasons he is requesting that he resign. He stated he
supports the presented resolution and asked President Robak to strip Director
Gastelum of all his committee assignments.
Mr. Kilian Colin of El Cajon indicated that he is a proud American who is a Jewish
immigrant from Syria. He stated that his father worked as an interpreter for the
United States military and was kidnapped and tortured. He and his family sold
everything they owned to get his father released. In 2005 they traveled to and
lived in Syria for seven (7) years as refugees waiting for the United States vetting
process to be completed. His family moved to the United States in 2011 which
represented for him and his family as a place where there is “Justice for All.” He
stated that “for all” means Muslims, Jewish, Arabs, etc. He indicated that they do
not want a public official who is using taxpayer’s money for his (Director
Gastelum’s) bigotry and racism. He stated that he invites Director Gastelum, as
his brother and fellow human being, to resign today.
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Ms. Wendy Patterson of San Diego indicated that she is an organizer for the
“Women’s March” where they believe that a diverse community is the strength of
our Country. She stated she also is Jewish and her family had to flee different
Countries due to prejudice and racism. She indicated that Director Gastelum’s
social postings are unbelievably abrasive, hurtful and divisive. They are anti-
American and he should not be a representative for the people of this
community. She asked the board to take Director Gastelum out of office in
whatever way they need to do it.
Ms. Alexandra Curtis of San Diego indicated that she is attending as a
community member to speak out against hateful and bigoted statements made
by Director Gastelum and to take a stand for the integrity of public service. She
stated that Director Gastelum’s primary duty as a public servant, and as a
recipient of taxpayer funded benefits, is to work for the public good and to
preserve the trust the public has placed in him. She stated that he has made it
clear repeatedly that he does not serve everyone in the public equally or at all
and he has failed as a public official in his responsibility to set a positive
example. She stated she supports the presented resolution to censure Director
Gastelum and for his removal from all committee assignments. She indicated
that this response, however, does not go far enough and requested that he
resign immediately.
Mr. Jorge Del Castillo of Chula Vista stated he is attending today’s meeting,
along with his colleagues, to request that the board not censure, but remove
Director Gastelum from his seat on the board. He indicated that just last week
Director Gastelum posted that he reserves the right to call people subhuman
monsters. He stated, thus, the resolution passed by the Otay WD board on
March 1, 2017 did not make any impact on Director Gastelum. He asked
Director Gastelum to resign from his seat on the board.
Ms. Mona Dibas of Bonita thanked the board for the presented resolution. She
stated, however, that it is just sweeping the problem under the rug as it does
nothing to stop Director Gastelum. She noted that he had just indicated at
today’s meeting that if you do not like his apology, then it is on you. The board
just pledged to the American flag, “liberty, freedom and justice for all.” She
stated that the board has the opportunity to do what is right today and do
something American. Give liberty, freedom and justice for all.
Ms. Margaret Baker of Chula Vista stated that she would also like to see more
than just a censure today and would like to push the board to go as far as it can.
She stated that Director Gastelum’s comments are a threat to our way of life and
on behalf of her community, who all value an open transparent society, she
requested that the board take the strongest action possible today.
Mr. James Elia indicated that he finds it very sad that they have to come together
as a group to hold their public officials accountable. He indicated that he has
contacted the City of Chula Vista and the City indicates that they would have full
authority to conduct an investigation and oversee the activity of the Otay WD if
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there is any type of operational issues. He stated that he has called for the City
to investigate as he believes that this is an operational issue. When the staff of
the District is answering 3000 phone calls a month because of social media posts
by a board member condemning minority groups, this is an operational issue. He
indicated that the United States will always be a welcoming nation and will
always have immigrants. He encouraged Director Gastelum to seek counsel
from his pastor or priest.
Mr. Haider Aljaber of Chula Vista indicated that he was offended by Director
Gastelum’s posts that called him and fellow Muslims subhuman. He indicated
that he is a refugee from Iraq. His family fled to Saudi Arabia and lived in a
refugee camp before immigrating to the United States in 1997. He stated he is a
United States citizen now and a ratepayer of the Otay WD. He indicated that if it
were up to him, they would vote at today’s meeting to remove Director Gastelum
from his seat.
Mr. Fayaz Nawabi of San Diego, representing the Council on American-Islamic
Relations and the Trustee Advisory Council for the San Diego Community
College District, indicated that Director Gastelum needs to think about what he
posts and what he has done. He stated that he has not been responsible or
accountable for what he has been posting and he must realize that when he
posts as a public official, it has repercussions in the community. He stated that
he supports the presented resolution, however, the resolution does not go far
enough. They are requesting that he resign and be accountable for his actions.
Mr. Jason Prater of Chula Vista indicated that he is calling for the resignation of
Director Gastelum for his disgraceful, inappropriate and hurtful comments made
towards Muslims, African Americans, Hispanics, members of the LGBT
community, women and veterans. He stated that Director Gastelum has lost
credibility and the ability to lead in the City of Chula Vista and the South Bay. He
stated that he is a student of leadership and recently was studying what political
leadership means. Specifically, what citizens want from their elected leaders and
wished to read a short excerpt from an article that spoke to this issue. The article
states:
We need leaders who understand that governing means uniting and
building coalitions, not dividing and conquering. We do not need more
partisanship or divisiveness, we need leaders with a broad set of work
experiences and strong management skills. Leaders who will use
discretion and good judgement. We need real leaders that can correctly
anticipate and handle an increasing number of major world events and
crisis, sometimes simultaneously, as well as those who challenge,
empower and hold accountable those serving under them. We need
leaders who understand that ideology in and of itself is not a reason for
decisions. We need leaders who understand that we are living in a global
world where diversity is an asset and not a threat.
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He indicated to Director Gastelum that he has shown that he prefers divisiveness
over unity and partisanship over building coalitions and lacks discretion and good
judgement. He asked him to apologize for his hurtful comments and resign from
his seat on the board.
Mr. Mark Bennett of Chula Vista indicated that he supports the presented
resolution. He stated that his father is a World War II veteran, his father’s father
was a marine in World War I, and his son is in the Army reserves. He stated he
wished to address Director Gastelum’s comment that he feels like he
surrendered his first amendment right when he was elected to office. Mr.
Bennett clarified that the first amendment protects citizens from the government
from making laws that prevent their free speech and freedom of religion. The
United States founders, in their wisdom, put in the first amendment right so
citizens can hold elected officials accountable to the ethical standards of our
society. He stated that all those in attendance at today’s meeting are doing this
today.
Ms. Andrea Beth Damsky of La Mesa stated that she has attended to speak on
behalf of her Muslim and Latino friends and all in the community who are other
than “white.” She indicated, as a Jewish person and a woman, that she is
concerned and offended by Director Gastelum’s comments. She shared that La
Jolla has a shameful history that most people are not aware of. La Jolla
residents had refused to let Jewish people live within their community. She
stated that this is no longer the case, but she brings it up because she doesn’t
want anyone in this County to feel unwelcome to use the services provided by
the agencies or to be part of the community. She stated that she is very much in
favor of censoring and removing Director Gastelum from his position as he is not
a good role model for our community and children.
Director Gastelum indicated that, again, his comments were not about the people
attending today’s meeting. He stated he never painted everyone with the same
brush and that his comments were specific to the people who are doing horrible
things. He stated that he has apologized to the people whose feelings were hurt
and he stands by his apology and that he had not painted everyone with the
same brush. He stated he believes that the attendees at today’s meeting know
this and that they are trying to make a political statement. He reiterated that he
never painted 1.6 billion people with the same brush and his comments were
very specific to the people who are doing horrible things and his comments did
not include the people attending today’s meeting.
Director Croucher indicated that it is unfortunate that we are here today. He
stated that he agrees with the speaker who indicated that the District should be
focused on water issues: quality, reliability and rates. He stated that the
statements made by Director Gastelum are his statements and they are not the
board’s statements. He noted that the speaker, Mr. Jason Prater, was very well
spoken and that he agreed with his comments. He indicated that he would like to
invite him back sometime in the future to discuss leadership and serving the
community.
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President Robak indicated that the Board of Directors does not have the power to
remove Director Gastelum from his seat as he is elected by the voters in his
division. He stated that comes down to either Director Gastelum resigning, as
the public attendees are requesting, or the public can organize a recall.
General Counsel Daniel Shinoff shared that the role of the board is to create
policy for the Otay WD and assure that its operations are financed. The District
has a general manager and staff who manage the day-to-day operational issues
of the District and these individuals are held ultimately accountable to the board.
He stated if there is interest in having an individual removed from office, there is
a recall process, which is brought forward by the people of the division. He noted
that, unfortunately, there is a significant expense associated with a recall election
and the District would be responsible to fund the special election with ratepayer
funds.
Director Thompson indicated to Director Gastelum that he needs to be aware of
the ramifications of his comments and how they impact people’s lives. He stated
the District will spend many hours of its time on things that have nothing to do
with water because of Director Gastelum’s comments. He stated that because
Director Gastelum lacks the ability to understand the profound impact of his
actions and how to move forward by telling the community that he will change his
behavior and will not do it again, he has brought the presented resolution
forward. He additionally indicated to Director Gastelum that he does not believe
that anyone is ever lost forever. He believes that Director Gastelum can find
himself and a better way.
The motion and second was carried with the following vote:
Ayes: Directors Croucher, Robak, Smith and Thompson
Noes: Director Gastelum
Abstain: None
Absent: None
to approve Resolution No. 4333 censuring Director Gastelum.
The board recessed at 4:21 p.m. and reconvened at 4:36 p.m.
6. PUBLIC PARTICIPATION – OPPORTUNITY FOR MEMBERS OF THE PUBLIC
TO SPEAK TO THE BOARD ON ANY SUBJECT MATTER WITHIN THE
BOARD'S JURISDICTION BUT NOT AN ITEM ON TODAY'S AGENDA
Ms. Mona Dibas of Bonita indicated that she wished to address the people
Director Gastelum has disrespected repeatedly and the members of the District
who must listen to their comments at each meeting. She indicated that this
would not be the last time that they would need to work hard to do what is right.
She stated that they may defeat Director Gastelum, but others may take his
place and they cannot give up. Ms. Dibas indicated that people united can never
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be divided. She thanked the board for approving the resolution and stated that it
was a step in the right direction and she hoped it would help them take many
more steps.
ACTION ITEMS
7. ENGINEERING AND WATER OPERATIONS
a) APPROVE A CONSTRUCTION CONTRACT WITH ACE ELECTRIC, INC.
FOR THE OWD ADMINISTRATION AND OPERATIONS PARKING LOT
IMPROVEMENTS AND PH. I-LIGHTING & ELECTRIC VEHICLE
CHARGING STATION PROJECT IN AN AMOUNT NOT-TO-EXCEED
$369,495
Engineering Manager Dan Martin indicated that staff is requesting that the board
approve a construction contract with Ace Electric, Inc. in an amount not-to-
exceed $369,495 for the Otay WD Administration and Operations parking lot
improvements and Phase I lighting and electric vehicle charging station project.
He reviewed information within the staff report (please see attached copy of the
staff report).
In response to an inquiry from Director Gastelum, staff indicated that the yearly
savings will be $8,500 per year based on all lighting that is replaced. The lighting
has reached the end of their serviceable life. Additionally, Title 24 requirements
requests that all lighting radiating upward be eliminated. All lighting must radiate
towards the ground. The District will also add lighting along the driveway going
uphill to the District’s building to enhance safety.
A motion was made by Director Croucher, and seconded by Director Smith and
carried with the following vote:
Ayes: Directors Croucher, Gastelum, Robak, Smith and Thompson
Noes: None
Abstain: None
Absent: None
to approve staffs’ recommendation.
WORKSHOP
8. WORKSHOP ON THE RESULTS OF THE 2017 WATER COST OF SERVICE
STUDY
Finance Manager Kevin Koeppen indicated that staff will be presenting the
results of the current Water Cost of Service Study (COSS) to obtain direction
from the board to prepare the FY 2018 budget using the recommended rate
structure from the study. He stated that the District performs a COSS every five
(5) years depending on changes in economic factors, water usage patterns,
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regulations, CIP costs and other related cost drivers. He indicated that the study
was prepared by HDR Engineering, Inc. and that it is important to perform these
rate studies on a periodic basis to ensure there is equity in the water rates for the
various customer classes. He noted that it has been four (4) years since the last
rate study and changes in usage patterns and the legal environment warrant that
the study be updated. The primary objective of the study is to present a rate
structure that is compliant with Proposition 218 requirements and is least
disruptive to the District’s customers, to reduce the complexity of the District’s
rate structure, and to maintain revenue neutrality. This means that the District
will collect the same amount of revenue, though customer bills may change. He
reviewed information within the staff report (see attached copy of staff report).
Mr. Koeppen introduced Mr. Tom Gould, HDR Engineering, Inc., to review the
process and the results of the study. Mr. Gould presented a powerpoint
(attached) which provided an overview of the District’s current potable and
recycled rates, Proposition 218 requirements for rate setting, an analytical
framework on how to establish cost-based rates, an analysis on revenue
requirements, a review of how costs are allocated between potable and recycled
water, an analysis on the District’s cost of service, the proposed rate structures
for potable and recycled, and a comparison of customer bills based on the
proposed rate structures.
In response to an inquiry from Director Smith, Mr. Gould confirmed that for
irrigation customers, usage patterns are considered when allocating costs. He
noted that cost of service is not a precise analysis as there are certain
assumptions that need to go into the analysis and, additionally, cost and
assumption patterns are constantly changing. He stated that if you are within
±5% of the overall adjustments, you would be within the range of a good
scientifically based cost of service study (the District is at ±0%). He also noted
that because fixed charges are higher than the District has charged in the past,
low water users will have a higher impact by the proposed tier rate adjustments.
Mr. Gould explained in response to an inquiry from Director Gastelum that part of
the District’s costs is related to the oversizing of facilities to meet fire protection
requirements. The District allocates the cost of the oversizing related to fire
protection demands to customers. Therefore, there is no cost charged to the fire
department as the costs are allocated equitably in the distribution costs to the
customers of the District.
Director Croucher indicated in response to an inquiry from Director Thompson
that residential structures are pretty small compared to commercial structures
which require a much larger fire flow. Mr. Gould stated that the cost distribution
is based on the potential for fire protection, but not on the number of actual fires
that were put out in any single year. The infrastructure needs is based on the
number of all structures and the gallons per minute required for fire protection for
each structure. The required oversizing cost is then proportionally shared among
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all customers. It was noted that fire protection cost is a small portion of overall
costs.
Director Gastelum inquired if a large irrigation meter customer lowers their
consumption because they have redone their landscapes with drought tolerant
plants, would these customers be able to request a smaller meter for their
irrigation needs. Staff indicated that if their new lowered water use can be
accommodated by a smaller meter, the District would consider switching their
meter out to a smaller meter.
Mr. Gould indicated, in response to an inquiry from Director Thompson, that the
drought has really pushed peak demands down for customers. The first tier cost
of $3.03/CCF (for 1 to 10 units water use) is made up of the cost for the flow of
water and the allocation of the capacity cost (cost of the system). He stated that
residential customers have reduced their peak demand considerably, particularly
those customers in the lowest tier. This is the reason residential costs have gone
down.
Director Croucher left the dias at 5:40 p.m. and returned at 5:45 p.m.
President Robak inquired why staff has proposed a uniform rate for all customers
with the exception of residential. Mr. Gould indicated that multi-residential will
also continue with tiered rates. He stated with residential customers, the rates
should encourage efficient use. The philosophy of tiered rates is to provide
efficient users with a cost based rate, but also price tiers for inefficient users to
encourage conservation. He noted that if the District moved to a uniform rate for
residential users, the cost would be approximately $3.85/CCF. This would
provide a significant benefit to the larger users and could encourage more water
use. The District also wishes to minimize the impact to customers, as the low
water users would be more impacted by a uniform rate. He stated that if the
District would like to move to a uniform rate for residential users, it could slowly
collapse the tiers. For FY 2018 it is proposed that the District move from a four
(4) tier to a three (3) tier rate structure. The District can eventually move to two
tiers than a single uniform rate.
Director Gastelum left the dias at 5:50 p.m. and returned at 5:54 p.m.
Following Mr. Gould’s presentation, Finance Manager Koeppen indicated that
staff wished to receive the Board’s feedback on the findings of the COSS and
stated that the proposed FY 2018 budget will be based on this study. He stated
the budget will be prepared and presented on May 24, 2017 for the board’s
consideration. There will be a five-year Proposition 218 notification to customers
advising of the proposed water and sewer rate increases. The notification will
also include a pass-thru component of supplier (San Diego County Water
Authority, Metropolitan Water District, SDG&E and the Metro Commission) rate
increases. The notice will establish a maximum rate increase for the portion of
the rate increase that is related to internal (Otay WD) cost increases. He also
indicated that staff plans to begin mailing the Proposition 218 notices to
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customers in the early part of the third quarter of the calendar year and it is
hoped that the Proposition 218 hearing would be held in the later part of the third
quarter or early in the fourth quarter of this calendar year. It is at that hearing
that the board would vote on the proposed rates and structures and those new
rates and structures would become effective in January 2018.
9. ADJOURNMENT
With no further business to come before the Board, President Robak adjourned
the meeting at 5:59 p.m.
___________________________________
President
ATTEST:
District Secretary